European Agricultural Fund for Rural Development (EAFRD)

This Regulation lays down the general rules governing Community support for rural development, financed by the EAFRD. It also defines the aims of rural development and the framework governing it.

The Fund contributes to improving:

• the competitiveness of agriculture and forestry;
• the environment and the countryside;
• the quality of life and the management of economic activity in rural areas.

The Fund complements national, regional and local actions, which contribute to Community priorities. The Commission and the Member States are also to ensure that the Fund is consistent and compatible with other Community support measures.

2014-2020

Implementation:
 

The EAFRD shall act in the Member States through rural development programmes. These programmes shall implement a strategy to meet the Union priorities for rural development through a set of measures, for the achievement of which aid from the EAFRD will be sought. There shall be consistency between support from the EAFRD and the measures financed by the European Agricultural Guarantee Fund.

A Member State may submit either a single programme for its entire territory or a set of regional programmes.Member States with regional programmes may also submit for approval a national framework containing common elements for these programmes without a separate budgetary allocation.

Member States may include within their rural development programmes thematic sub-programmes, contributing to the Union priorities for rural development, aimed to address specific needs identified, in particular in relation to:
(a) young farmers;
(b) small farms;
(c) mountain areas;
(d) short supply chains.

(e) women in rural areas; 
(f) climate change mitigation and adaptation and biodiversity

The maximum EAFRD contribution rate shall be: 
(a) 85 % of the eligible public expenditure in the less developed regions, in the outermost regions and in the smaller Aegean islands

(b) 75 % of the eligible public expenditure for all regions whose GDP per capita for the 2007-2013 period was less than 75 % of the average of the EU-25 for the 
reference period but whose GDP per capita is above 75 % of the GDP average of the EU-27

(c) 63 % of the eligible public expenditure for the transition regions other than those referred to in point (b) of this paragraph;

(d) 53 % of the eligible public expenditure in the other regions. 

The minimum EAFRD contribution rate at axis level shall be 20 %.

Supported activities

Fostering knowledge transfer and innovation in agriculture, forestry, and rural areas with a focus on the following areas:

• fostering innovation and the knowledge base in rural areas;
•  strengthening the links between agriculture and forestry and research and innovation;
• fostering lifelong learning and vocational training in the agricultural and forestry sectors.

Enhancing competitiveness of all types of agriculture and enhancing farm viability, with a focus on the following areas:

• facilitating restructuring of farms facing major structural problems, notably farms with a low degree of market participation, market-oriented farms in particular sectors and farms in need of agricultural diversification;
• facilitating generational renewal in the agricultural sector.

Promoting food chain organisation and risk management in agriculture, with a focus on the following areas:

• better integrating primary producers into the food chain through quality schemes, promotion in local markets and short supply circuits, producer groups and inter-branch organisations;
• supporting farm risk management:

Restoring, preserving and enhancing ecosystems dependent on agriculture and forestry, with a focus on the following areas:

• restoring and preserving biodiversity, including in Natura 2000 areas and high nature value farming, and the state of European landscapes;
• improving water management;
• improving soil management.

Promoting resource efficiency and supporting the shift towards a low carbon and climate resilient economy in agriculture, food and forestry sectors, with a focus on the following areas:

• increasing efficiency in water use by agriculture;
• increasing efficiency in energy use in agriculture and food processing;
• facilitating the supply and use of renewable sources of energy, of byproducts, wastes, residues and other non food raw material for purposes of the bio-economy;
• reducing nitrous oxide and methane emissions from agriculture;
• fostering carbon sequestration in agriculture and forestry;

Promoting social inclusion poverty reduction and economic development in rural areas, with a focus on the following areas:

• facilitating diversification, creation of new small enterprises and job creation;
• fostering local development in rural areas;
• enhancing accessibility to, use and quality of information and communication technologies (ICT) in rural areas.

All of the priorities shall contribute to the cross-cutting objectives of innovation, environment and climate change mitigation and adaptation.

Implementing the national strategic plans is carried out through rural development programmes containing a package of measures grouped around 4 axes *.

Axis 1: Improving the competitiveness of the agricultural and forestry sector

Aid for promoting the competitiveness of the agricultural and forestry sector includes:

• measures aimed at promoting knowledge and improving human potential through:
  • vocational training and information actions,
  • schemes promoting the establishment of young farmers (people under 40 years of age setting up for the first time as the head of a holding) and the structural adaptation of their holdings,
  • early retirement for farmers deciding to cease activities with the aim of transferring their holding to other farmers, and agricultural workers who decide to definitively cease all agricultural activities. In general, beneficiaries must be at least 55 years old, but below the regular age of retirement in the Member State concerned,
  • the use of advisory services by farmers and forest holders and the establishment of advisory services, farm relief and farm management support services. The use of these services should help assess and improve the performance of their holdings;
• measures aimed at restructuring and developing physical potential:
  • the modernisation of agricultural and forestry holdings and the improvement of their commercial performance by, for example, bringing in new technology,
  • adding value to primary agricultural and forestry production. This means supporting investments aimed at enhancing the efficiency of the processing and marketing stages of primary production whilst simplifying the eligibility criteria for investment support compared to the criteria applicable at present,
  • improving and developing infrastructure related to the development and adaptation of agriculture and forestry,
  • restoring agricultural production potential damaged by natural disasters and introducing appropriate prevention schemes;
• measures aimed at improving the quality of production and products:
  • assist farmers in adapting to the demanding rules laid down in EU legislation, partly offsetting the additional costs or loss of revenue resulting from these new responsibilities,
  • encourage farmers to participate in schemes that promote quality food and that give consumers assurances of the quality of a product or production method, providing added value to primary products and boosting trade opportunities,
  • support producer groups in their information and promotion activities for products covered by food quality schemes;
• provisional measures are also planned for the new Member States, regarding:
  • aid for semi-subsistence holdings * undergoing restructuring,
  • aid for the establishment of producer groups,
  • aid for agricultural holdings undergoing restructuring, including diversification into non-agricultural activities.

Axis 2: improving the environment and the countryside

Axis 3: quality of life in rural areas and diversification of the rural economy

Regarding the diversification of the rural economy, the Regulation contains measures on:

• diversification towards non-agricultural activities, support for the establishment and development of micro-businesses, promotion of tourism and the protection, development and management of the natural heritage that contributes to sustainable economic development;
• improving the quality of life in rural areas, with particular focus on renovating and developing villages and preserving and making the best use of the rural heritage; and
• acquiring skills and running activities in order to prepare and implement the local development strategy.

Axis 4: LEADER

Within technical assistance and networking actions, EAFRD will finance the set up of a European network for rural development, the EIP network, a European evaluation network for rural development and a national rural network. EIP stands for European Innovation Partnership "Agricultural Productivity and Sustainability". EAFRD will also contribute to the aims of the EIP for agricultural productivity and sustainability through support of the EIP operational groups. More information on EIP: http://ec.europa.eu/agriculture/eip/index_en.htm

The LEADER approach for local development has, over a number of years, proven its utility in promoting the development of rural areas by fully taking into account the multi-sectoral needs for endogenous rural development through its bottom-up approach. LEADER should therefore be continued in the future and its application should remain compulsory for all rural development programmes. Support to LEADER local development from the EAFRD should cover all aspects of the preparation and implementation of local development strategies and operation of local action groups as well as cooperation among territories and groups which carry out bottom-up and community-led local development. In order to enable partners in rural areas not yet applying LEADER to test and prepare for the design and operation of a local development strategy a "LEADER start-up kit' should also be financed. At least 5% of the total EAFRD contribution to the rural development programme shall be reserved for Leader.

Implementation

The EAFRD shall act in the Member States through rural development programmes. These programmes shall implement a strategy to meet the Union priorities for rural development through a set of measures, for the achievement of which aid from the EAFRD will be sought. There shall be consistency between support from the EAFRD and the measures financed by the European Agricultural Guarantee Fund.
Several EU funds provide additional support for rural areas alongside the EAFRD, namely: the European Regional Development Fund (ERDF), the European Social Fund (ESF), the Cohesion Fund (CF) and the European Maritime and Fisheries Fund (EMFF). In order to deliver greater European added value and maximise synergies, in 2014-2020 all European Structural and Investments funds (ESI funds) will concentrate their support on achieving the EU2020 headline targets and will be coordinated under a Common Strategic Framework (CSF).
A Member State may submit either a single programme for its entire territory or a set of regional programmes.Member States with regional programmes may also submit for approval a national framework containing common elements for these programmes without a separate budgetary allocation.

Member States may include within their rural development programmes thematic sub-programmes, contributing to the Union priorities for rural development, aimed to address specific needs identified, in particular in relation to:
(a) young farmers;
(b) small farms;
(c) mountain areas;
(d) short supply chains.

 (e) women in rural areas; 
(f) climate change mitigation and adaptation and biodiversity

The EAFRD contribution rate shall be established for each axis.

The maximum EAFRD contribution rate shall be: 
(a) 85 % of the eligible public expenditure in the less developed regions, in the outermost regions and in the smaller Aegean islands

(b) 75 % of the eligible public expenditure for all regions whose GDP per capita for the 2007-2013 period was less than 75 % of the average of the EU-25 for the 
reference period but whose GDP per capita is above 75 % of the GDP average of the EU-28

(c) 63 % of the eligible public expenditure for the transition regions other than those referred to in point (b) of this paragraph;

(d) 53 % of the eligible public expenditure in the other regions. 

The minimum EAFRD contribution rate at axis level shall be 20 %.

For the expenditure incurred under the new programming period 2014-2020 the EAFRD contribution rate may be increased by 10 percentage points above the co-financing rate applicable to each measure for the EAFRD. This new system, which will be a uniform top-up for all measures, may in some cases mean either lower or higher changes to the EAFRD contribution rates than the current system under Article 70(4c) of Regulation (EC) No 1698/2005

The EAFRD is financed under Pilar II of the Common Agricultural Policy (CAP). It shall contribute to the Europe 2020 Strategy by promoting sustainable rural development throughout the Union in a complementary manner to the other instruments of the common agricultural policy (hereinafter “CAP”), to cohesion policy and to the common fisheries policy. It shall contribute to a more territorially and environmentally balanced, climate-friendly and resilient and innovative Union agricultural sector.

€ 95.577 billion in current prices (CAP Pillar II)

Eligibility:
 

Interested applicants should contact their responsible ministry. Contact details and information on National Rural Development Programmes for respective country (EU27) can be found at: http://ec.europa.eu/agriculture/index_en.htm

European Union countries.